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A partner died after completing 8 months of the financial year. If the firm's estimated annual profit is ₹3,72,000 and profit accrues evenly throughout the year, what is the deceased partner's proportionate share of profit up to the date of death?

Answer and explanation

Correct answer: ₹2,48,000

The proportionate profit up to the date of death is calculated as annual profit × months elapsed/12 = ₹3,72,000 × 8/12 = ₹2,48,000. Hence, option A is correct. Option B represents 6 months' profit, option C represents 10 months' profit, and option D represents 4 months' profit. Exam tip: divide the annual profit by 12 first and multiply it by the number of completed months.

Related tags

Partnership AccountingDeceased PartnerProportionate ProfitRetirement Or DeathClass 12 AccountancyDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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